STARTING
MY OWN SMALL
BUSINESS
A training module on
entrepreneurship
for learners
in a non-formal setting
Facilitator’s guide
Part A: Business skills
Part B: Information and communication technology (ICT)
Foreword
he Education For All (EFA) process, for which UNESCO is the lead
Agency, has spurred considerable increases in primary school
enrolments in many Least Developed Countries (LDCs). As these
young people complete their primary education, their governments will be
faced with the challenge of providing them with opportunities for further
learning – either in the form of general secondary education or some
preparation for the world of work.
T
Many countries, particularly in Africa, consider that technical
and vocational education and training (TVET) can equip young people
with skills that enable them to engage in productive livelihoods. Yet in the
past, TVET programmes have not led to increased employment, despite the
obvious need in these countries for technical and vocational services. This
has been due, in large part, to a dearth of wage employment opportunities
for technically trained workers.
UNESCO’s Section for Technical and Vocational Education
is addressing this issue by proposing that entrepreneurial skills should
augment the technical knowledge and skills learners might already have.
Entrepreneurial skills will help them to acquire the mindset and know-how
necessary to make self-employment a viable career option. Since there
is currently little resource material available for teaching and learning
about entrepreneurship, especially for learners in the non-formal setting,
UNESCO has developed this prototype of a modular training package in
entrepreneurship entitled “Starting my own small business”.
It is my fervent hope that education authorities, and nongovernmental organizations and others will utilize this training package
for non-formal learners in conjunction with vocational skills training
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programmes. This can help prepare learners of all ages and backgrounds
to have productive livelihoods as self-employed entrepreneurs. In countries
where significant numbers of young people work in the informal economy,
this resource material may be used to train those already in the workforce to
systematize and improve the quality of their work, with the goal of eventually
becoming contributors to the formal economy.
UNESCO views the ability to engage in a livelihood as a vital life
skill. Therefore, this training package in entrepreneurship may be considered
a contribution towards achieving goal 3 of the EFA agenda – providing
young people and adults with access to quality life-skills programmes.
Peter Smith
Assistant Director-General for Education
UNESCO
Paris, March 2006
3
Preface
tarting my own small business is a prototype modular training package
in entrepreneurship that is intended to provide supplementary knowledge
to young people receiving technical and vocational education and training
(TVET), in formal or non-formal settings, so that they may acquire an entrepreneurial mindset and the knowledge to set up a small business, if they so wish.
S
The training packages have been developed as a result of numerous
requests from high-level education policy-makers in developing countries,
particularly in Africa, who have bemoaned the lack of employment opportunities for
the technically trained, while at the same time the availability of technical services
was very limited. They were convinced that young technically trained people needed
to become self-employed as independent service providers rather than depend on
finding wage employment. Young people would then be able to satisfy the demand
for those services while carving out profitable careers for themselves.
Yet, there was little available resource material on entrepreneurship that
could augment TVET. This led UNESCO to hold two workshops in Lusaka, Zambia
and Kampala, Uganda bringing together TVET policy-makers from 11 East African
countries to design modular training packages in entrepreneurship for higher secondary TVET learners and for non-formal learners. Following their guidelines and
in close consultation with a core group of the workshop participants, UNESCO’s
Section for Technical and Vocational Education developed these prototype training
packages for the two groups of learners.
The training packages are elementary and are intended to be an introduction to ethical entrepreneurship. They make no claim to be a complete resource
material on starting a small business. Rather, they are core programmes that outline the key topics on entrepreneurship and may be expanded or abbreviated as
the teaching situation demands. They also aim at instilling a heightened sense of
self-confidence, particularly among non-formal learners, and awakening them to
the possibility that self-employment could be a viable career option.
Launching a successful business requires an awareness of one’s
knowledge, skills, abilities, aptitudes, values and preferences. The training therefore
begins by inviting students to consider their own strengths and weaknesses in
these areas, so that they develop a clear sense of themselves. They are encouraged
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to perceive themselves as the actors responsible for their own lives. Learners are
then guided through the various stages of developing a commercial idea, from
identifying a community need for a product or service to acquiring resources,
organizing a workplace and marketing the product or service and finally preparing
a business plan. At each step, the learner is encouraged to discover how his or
her skills may be utilized to cater to a need in the community. While encouraging
independent thought, creativity and initiative, the training demonstrates the
benefits of collaborative work by treating selected topics as group activities.
Finally, a section on the use of information and communication technology (ICT) in a small business enables facilitators to introduce these concepts to the
extent that is relevant. The rapid spread of ICT usage lends this topic increasing significance. Such a discussion may also help to dispel the mystique that may persist
in the minds of some learners regarding ICT.
For learners completing secondary-level education, the training may help
to make the transition from the structured atmosphere of the school to the world
of work. For some non-formal learners it may provide the keys to a livelihood and
for others it may lend legitimacy and system to work they are already doing.
By promoting economic self-reliance and the need to play a constructive role in the community, the training also aims at human capacity building, a
key element of sustainable development. Furthermore, empowering young people
to engage in productive livelihoods is consistent with the first of the Millennium
Development Goals, which is concerned with poverty eradication.
Each training package consists of two parts – a facilitator’s guide and a
participant’s workbook. Facilitators may adapt and interpret the training material
to suit the unique situations in each community. The packages may be translated
into local languages and reproduced without restriction, provided UNESCO is
acknowledged as their source.
Section for Technical and Vocational Education
UNESCO
5
Objectives
of the course
his package is designed to motivate young and older people who
are not receiving or have not received a formal education. It aims
to equip them with the rudimentary knowledge and skills to engage
in some form of self-employment. The units in this package will attempt
to create an awareness among the participants of how their own qualities
and latent skills may help them to acquire an entrepreneurial mindset and
to launch their own small business.
T
Your role as the facilitator is to help participants to understand
that they must develop attitudes conducive to generating independent
initiatives, using their inherent skills to build livelihoods for themselves.
The facilitator must therefore ensure a freely interactive atmosphere
and emphasize that participants are full partners in this exercise. Each
participant should feel that they can make a crucial contribution towards
the effectiveness of the course.
Practical hints
Your group will be made up of a variety of young people and adults
with different cultural, social and educational backgrounds, some of whom
may not be accustomed to the collective learning process of a classroom.
Among them, some may have started their own business. The group should
be aware that this diversity is a strength, and that it is important that a
climate of mutual respect be created in the class.
Activities should be chosen according to the age, educational
level and interest of participants. Certain activities may make some adults
feel that they are being treated like children. Letting them decide if they
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would rather write, draw or just talk could help. Remaining flexible while
ensuring that participants acquire specific competencies is a delicate, but
important skill in a facilitator.
Remember: good facilitating is a skill that improves and gets
refined with continued practice.
NB. The terms ‘client’ and ‘customer’ are used interchangeably.
When either the term ‘product’ or ‘service’ is used, the other is also implied.
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Contents
PART A: BUSINESS SKILLS
Unit 1 Learning together
10
Unit 2 My entrepreneurial skills
11
Unit 3 My ideas for small business
12
Unit 4 My market
13
Unit 5 Setting my prices
14
Unit 6 Finding the money to start
my business
16
Unit 7 Banking
18
Unit 8 Keeping track of my money
20
Unit 9 Communicating with my
customers and business partners
21
Unit 10 Making the best use of my time
22
Unit 11 Observing rules and regulations
24
Unit 12 Managing my workplace
25
Unit 13 My business plan
27
PART B: INFORMATION AND COMMUNICATION
TECHNOLOGY (ICT)
29
Unit 1 Contacting my clients and
partners with ICT
30
Unit 2 The Internet and e-business
32
LEARNING OBJECTIVES
8
9
34
Part A
Business skills
This part of the course will help participants to
discover the skills and qualities they possess that will
assist them to become successful entrepreneurs.
It will then introduce them to a few basic concepts
in business.
9
Unit 1
Learning together
Q Present yourself to the group. Ask the participants to present themselves.
In this unit, you need to encourage participants to share their expectations of the
course with the rest of the group. This exercise could help to start building confidence in the participants and create an atmosphere of dialogue. Introduce the ultimate
goal of the course, which is to create an awareness of their own skills and to learn
how to use those skills to engage in a small business.
Discuss:
X what they expect to discover about themselves
X what they expect to learn about creating a small business
X what they expect to contribute from their experience
X how they expect to interact with the facilitator and other participants.
Q Ask participants to set ground rules that should be observed during lessons.
Encourage them to pay attention to each other’s comments and respect each
other’s opinions. Make a list of these rules and keep them visible throughout
the sessions.
10
Unit 2
My entrepreneurial skills
The diversity in the group of participants is likely to bring together a varied assortment
of skills and prior experiences. However, they may show degrees of reluctance to
recognize and discuss their skills.
The facilitator needs to be patient in encouraging the participants to articulate
their capabilities and the value of their experiences, regardless of whether or not
they were acquired in a formal educational setting. It may be worth reminding the
group that many successful entrepreneurs have received only a modest education.
An individual’s inherent talent, combined with initiative and hard work, can produce
a thriving business enterprise.
There are different types of skills:
X conducting myself (confidence in myself, managing my life, being responsible, etc.)
X thinking (being creative, solving problems, making decisions, observing my
surroundings, basing actions on needs and opportunities of the immediate
context, etc.)
X interacting with people (working with others, accepting others irrespective of
their cast, gender, social status, whether they have a disability or not, etc.)
X my safety and survival (HIV/AIDS prevention, self-preservation, first aid, drug
abuse prevention, etc.)
X what I can do (repairing bicycles, cooking, making crafts, reading, singing, etc.).
Q Ask participants to describe their skills.
Q Discuss these things:
X How have they learnt these skills?
X What do they use these skills for?
X How often do they have to use the skills?
X How can they improve their skills?
11
Unit 3
My ideas for small business
Q Ask participants to consider their community and identify its needs for products
or services. They could approach this by identifying a difficulty the community
is experiencing and then determining what product or service could help
overcome that difficulty. Ask them whether they can apply one of their own
skills to provide a service or product that could address the needs.
For example:
X Need
Many elderly people in the community are unable to walk to the market or town centre.
X What can be done?
They need to be provided with a mode of transport.
X How can I help?
I own a donkey-cart.
I can offer to transport them to the market in my donkey-cart for a small fee.
Q Ask several participants to generate similar examples. Encourage them to think
about their skills and how they may address the identified needs.
Q Ask participants to form small groups, each of which will select a need that
they will develop into a business idea as the course progresses. This will also
introduce the concept of working together in business.
12
Unit 4
My market
Businesses function by selling a product or service to its market.
If a product or service is needed by a person or a group of people, there is a demand.
The people who need the product or service, and are willing to pay for it, are customers.
The number of customers in the community represents the market for a service or
product. Businesspeople who provide similar products or services are competitors.
A business can estimate the size of its market by carrying out surveys of customer
needs, preferences and willingness to pay.
Q Ask participants to design a simple market survey. The survey should try to find
answers to questions such as:
1. Who are the people (the part of the community) interested in my product
(age, gender, income status, etc.)?
2. Why do they like or dislike my product (shape, size, colour, etc.)?
3. Are they willing to pay a commercial price for it?
4. Will they always want to buy the product regularly or seasonally
(sustainable)? Or will they stop buying it completely (unsustainable)?
5. How many of my products or hours of my service will they need?
6. Where should the product be available (location of sales points)?
7. Who are my competitors?
13
Unit 5
Setting my prices
Since the participants now have an awareness of their talents and skills, and have
shared ideas for possible small businesses, the issue of pricing a product or service
needs to be discussed. A product or service may be exchanged for money or for
another product or service.
Most businesses will want to make a profit on products or services sold. Profit is the
difference between the cost price and selling price. Part of this money can be put
back (‘re-invested’) into the business. Profit should be calculated as a percentage of
the cost price. The profit margins should always be reasonable.
Fixing the selling price of a product or service must take into consideration the
following:
X cost of production (including your own salary)
X overheads
X profit.
It is therefore important to accurately calculate each of these, so that the final
selling price is realistic.
Cost of production + overheads + profit = selling price
Cost of production and overheads
Calculate each component that goes into production and overheads carefully, and add
them up. Labour and depreciation of equipment (when equipment loses its value over time)
may also need to be taken into account. In calculating the cost of labour, the entrepreneur
should set a wage that adequately compensates the workers’ knowledge and contribution,
taking into account the experience and qualifications of the worker, prevailing basic wage
rates, holiday pay, government tariffs and social security contributions.
Obtaining materials and/or production at a lower price could enable the entrepreneur
to reduce the selling price.
14
Unit 5
Setting my prices
Profit
The entrepreneur should set the level of profit made on the sale of a product or service
carefully, taking into account the relationship between demand for the product (how
many people want it) and the available supply (number of products available to be
sold). If demand is great for the available supply, the price (and thus the profit) may
be increased. If there is a large supply, but few people want to buy, then prices may
drop. An excessively high price due to a big margin of profit will dissuade customers.
When sales increase, profit margins may be reduced. This can enable the entrepreneur
to lower the selling price, therefore allowing the business to secure the market and
even expand it.
Q Select a product or service. Ask participants to cost the production, overheads
(electricity, etc.) as well as factors such as labour and depreciation of
equipment.
Q Ask them to set a profit margin and selling price.
Remind participants that the profit earned by business may not be retained
in its entirety. The business may need to pay taxes to the government or local
authorities.
15
Unit 6
Finding the money to start my business
People believe that they need a lot of money to launch a business. This is not always
true. Talent, resourcefulness and hard work are all as important as money.
When we decide to start a business, we need to think about what materials we will
need. Different types of business require different materials. What a business needs
will depend on the nature of its activity (the product or service it is providing), and of
course its size (how many people it employs, how many clients it has and the amount
of goods or services it provides).
We should try to obtain the things we need from sources in our community that
will not require payment. Materials can be expensive, particularly if they have been
transported long distances. Wherever possible, they should be obtained from the
local community and its surrounding areas. If the necessary materials are not easily
available for a reasonable fee, it may be necessary to change the business plan slightly
so that we work without that item or work with an alternative item that is similar,
or will serve the purpose.
We may also need premises to start our business.
If we need to pay for materials and premises to start our business, we will of course
need some money. We will then need to identify sources from which we will be able
to obtain the money we need.
The funds for launching the business may be obtained from one or a combination of
sources:
X personal savings
X family funds
X community co-operative organizations
X community financial syndicates
X micro-finance organizations
X post office
X savings and loan associations
X banks, etc.
16
Unit 6
Finding the money to start my business
Loans obtained from banks will involve repayment with interest. A new entrepreneur
should investigate as many sources of funding as possible in order to secure the
best terms and conditions for repayment. This means ‘shopping around’ for the most
favourable interest rates.
Q Discuss:
X What materials do we need?
X Where can we get them?
X If we have to buy them, how much will we have to pay?
X From where can we obtain the money?
17
Unit 7
Banking
Q Describe the different types of bank accounts available in the local community.
Cheque (current) accounts and savings accounts are perhaps the most frequently
used banking services. Other account options are also available, such as fixed deposit
accounts.
Current (cheque) account
A person can deposit (put in) money into a current account and withdraw (take
out) the amounts needed by writing cheques from a chequebook provided by the
bank. Usually there is no charge for withdrawing money, as long as there is sufficient
money in the account. The bank may also give us a magnetic card, which may be
used at that bank’s money-distributing machines. Usually banks do not pay interest
on money deposited in current or cheque accounts.
Money in a current account may be used to pay the day-to-day costs of running our
business.
Savings account
A savings account is for keeping money that we will not need to use on a day-to-day
basis. The money in a savings account earns interest. That means the bank pays us
some money for leaving our money in the account.
We can have both kinds of accounts at any time. When we open a bank account, we
must be sure to keep a record of the amounts of money we deposit (put into) the
account and the amounts we withdraw (take out of it). If we have a bank account
for our business, it must be a separate account from our personal or family account
[trick question in participant’s workbook!].
The bank will send us a statement regularly. This lists the amounts of money that
have been deposited and the amounts that have been withdrawn. It tells us how
much money we have in the account on the day the statement was written. We
should check that our own accounts match the bank’s statement.
Our community post office may also provide similar financial services to our bank.
18
Unit 7
Banking
Q Discuss:
X Is starting a bank account possible in our community?
X How would we go about opening a bank account?
19
Unit 8
Keeping track of my money
It is important to keep records of all the money earned and all the money spent.
The things we need for keeping good records are:
X a receipt book, for recording each transaction in which the business receives
money
X an expense book, for recording money spent
X a cashbook, for recording all the money transactions, both amounts received by
the business and amounts paid out by the business.
To ensure that our documents are kept safely and methodically, we should have a
filing system. Each type of document should be kept in a separate file (for example,
copies of receipts in one file, orders in another file), in alphabetical order. This will
help us to find the documents we need quickly and easily.
Q Show participants examples of a cashbook, a receipt book and a filing system.
20
Unit 9
Communicating with my
customers and business partners
Communicating clearly with customers and business partners is extremely important
for the success of our business.
A successful entrepreneur is:
X enthusiastic
X cheerful
X polite
X helpful, etc.
To build a successful business, we will need to convey the following to our customers:
X “I am honest’
Being frank about our product or service can help build clients’ trust and confidence
in us. This means that we should not give the client an incorrect impression of our
product. Being honest in general may also help us to buy materials or services at a
reasonable price from our business partners.
X “I have a tidy appearance”
Looking clean and tidy will show that we are careful people – and careful about the
things we make or do.
X “I am courteous”
Always be polite and friendly – even if a customer seems rude or does not buy
anything.
X “I listen to my customers”
Listen carefully and we may find out what a person would really like to buy, or how
much money they wish to spend. This may help us to suggest an alternative if they
do not find what they want.
Q Divide participants into two small groups. Ask one group to play the
role of the customer, and the other the role of the service provider in
the business of their choosing. Each member of the group should take
turns at being the spokesperson, while the rest of the group generates
ideas. Commend innovativeness and tactfully point out shortcomings.
21
Unit 10
Making the best use of my time
An entrepreneur needs to organize his or her time carefully. Your day may consist of
carrying out many activities, including family obligations.
Managing time is an essential part of good business planning, because time is a
resource that can have a monetary value. Poor time management usually leads to
last-minute rushes to meet deadlines, stress and inferior performance. This may result
in the product or service not being delivered in time. A disappointed customer may
seek a more reliable business provider.
Time should be allocated to tasks depending on:
X when the product or service is to be delivered
X how long the preparation of the product or service is likely to take
X the need to co-ordinate people working on the product or service preparation
X how important the product or service and client are to the business as a whole,
etc.
Good time management allows for situations beyond our control, such as bad weather
that may delay our work.
Often, we must undertake several tasks at the same time in order to complete our job.
We do this by estimating the amount of time necessary for each task and organizing
our work accordingly. This is true of many of the activities that we take on in our
everyday lives. For example, when we cook we do not prepare dishes one at a time.
Rather, we carry out our chopping, mixing and boiling in such a way that all our
dishes are ready to serve up just when we want them!
Similarly, a person working on one task may be asked to help with another task when
the work situation requires it.
The time taken for the various stages of production should be recorded, so that
clients can be given estimates of time before delivery. These records will also be
useful for planning future projects.
22
Unit 10
Making the best use of my time
Q Ask participants to list all the tasks they will have to carry out in their chosen
business each day. Then ask them to plan how and when they would carry out
each task.
For example:
Banks are not open for business in the late afternoon. Banking operations should
therefore be completed in the morning session.
Encourage them to co-ordinate activities, so that multiple tasks are carried out
at the same time whenever this is possible.
23
Unit 11
Observing rules and regulations
The local delivering institution or organization is expected to familiarize the
participants with the documents referred to in this unit. The aim is to inform the
participants of the laws, rules and practices that apply when starting a business in
the community. These may include, for example:
X requirements for registering a business
X laws that govern businesses
X the tax code for small businesses
X professional codes of conduct relevant to specific occupations, etc.
The authorities may offer certain facilities and incentives to entrepreneurs starting a
new business. These may take the form of:
X grants to set up a small business
X micro-finance
X tax relief
X legal aid
X recognition in the community, etc.
A businessperson from the local community may be invited to discuss with participants
how a new business is started. He or she could also describe the unforeseen obstacles
that are encountered when starting a business.
This session should be as interactive as possible.
24
Unit 12
Managing my workplace
This unit introduces basic safety skills to participants and asks them to consider the
importance of productive and safe working environments.
A workplace is where goods and services are produced or sold, such as a kitchen,
factory floor or shop. Good workplace management helps small businesses to:
X be efficient
X create comfortable and safe working conditions
X gain space
X reduce material damage and loss (wastage)
X prevent work-related accidents.
Workplaces must be kept clean and safe for workers and clients. The entrepreneur
should pay particular attention to:
X lighting and ventilation
X material handling and storage
X control of hazardous substances.
Lighting and ventilation
High precision work requires appropriate lighting. Workplace windows must therefore
be cleaned regularly to allow sufficient light to come through.
Similarly, ventilation is important for good health, particularly where work is being
carried out with machines, chemicals or raw materials. The work area should allow
enough space for air to circulate.
Material handling and storage
Storing materials properly helps to avoid accidents and save time. Raw materials,
semi-finished goods and completed products should be kept in separate areas. Some
raw materials and products should not be exposed to the elements (bad weather).
They should be stored indoors. Items that are not frequently used should be removed
from the work area. Appropriate protective equipment should be used, such as gloves
and eye protectors.
25
Unit 12
Managing my workplace
Control of hazardous substances
Substances like organic solvents, paint and glue must be kept in covered containers.
Wherever possible, less hazardous materials should be used.
Hands should always be washed after handling such substances.
Q Discuss:
X What is a workplace?
X Why must a workplace be well-organized and tidy?
X What must we do to keep our workplace safe?
26
Unit 13
My business plan
In this unit, explain that all that has been learnt in the previous units will build into
a business plan.
A business plan is a summary of what the business intends to sell, the resources it
needs and how it expects to acquire them, who will manage the business and what
profits may be expected.
It is required in order to:
X obtain permission from the local authority or the Chamber of Commerce to set
up the business
X convince funding institutions to provide finance
X rent a space for business premises
X convince business partners to supply materials or services, etc.
The business plan should consist of the following components:
X title page (name proposed for the business, entrepreneur’s name, contact address
and other co-ordinates)
X summary of business objectives
X table of contents
X structure of the proposed business
X intended product or service that is to be sold
X marketing plan (based on a simple market survey)
X financial plan
X anticipated returns
X other supporting documents, such as letters of recommendation, certificates of
education and training, community service documents, etc.
Q Ask participants to form several small groups and ask each group to prepare a
business plan.
27
Part B
Information
and communication
technology (ICT)
Information and communication technology (ICT)
can help to launch and manage a business efficiently.
Even though certain ICTs may not be immediately
available in many communities, it is important to
have some knowledge of their potential to improve
efficiency and expand a business. Therefore, where
the infrastructure to accommodate ICT is not yet
in place, the facilitator should take the participants
through these units in the interests of general
information.
This part of the course introduces ICT in a
progressive fashion, starting with the established
technologies and leading to contemporary ones.
29
Unit 1
Contacting my clients
and partners with ICT
ICT will enable the entrepreneur to enhance efficiency in the business by:
X facilitating communication
X storing information
X tracking inventories of stock
X providing a medium for advertising.
Examples of commonly-used ICTs are given below:
Phone
A phone is used for communicating verbally with clients and business partners.
Fax machine
This is short for ‘facsimile machine’. This is a machine that allows us to transfer a copy
of a document through the telephone line. Both the person sending the fax and the
person receiving it need to have a fax machine. Sending a written message by fax is
a good way to make sure that it is received as quickly as possible.
If we are dealing with people far away, a fax can also be a less expensive means of
communicating. A message sent by fax can confirm in writing anything that has been
previously agreed on verbally.
Most new fax machines also include a phone.
Radio
Radio is a very effective way to advertise a business. It is relatively inexpensive and
can reach a large audience.
Some communities have a local radio service. The entrepreneur may use this service
to advertise products or services by being interviewed during a programme. The
positive contribution of a business to the community can also be publicized via the
local radio.
30
Unit 1
Contacting my clients
and partners with ICT
Television
A business may use the medium of television for advertising. However, it is an
expensive form of advertising.
The computer
The computer can be used for:
X word processing (writing letters or receipts)
X storing information (financial data, customers’ addresses, etc.)
X keeping track of inventories
X reminder messages about product or service delivery dates
X generating advertising leaflets and posters
X generating financial statements, etc.
Q Ask participants to carry out exercises as appropriate, taking into consideration
the equipment available and the extent of the participants’ familiarity with
them.
31
Unit 2
The Internet and e-business
The Internet
The Internet links computer networks together. To connect to the Internet, we must
have access to the following:
X a computer with a modem connected to a phone line
X software that allows us to connect to the Internet
X an Internet service provider account.
The Internet can be used by a business in two ways:
X sending electronic mail (‘e-mail’)
X accessing the World Wide Web.
The Internet is usually available 24 hours a day. This means that communicating
across different time zones is easy.
E-mail enables us to send and receive messages, pictures and sound on our computer.
E-mail messages are sent and received almost instantaneously. This is an inexpensive
way to contact people far away, as sending a message may cost about the same as a
local telephone call.
The World Wide Web is a part of the Internet that carries millions of pages of
information, in sections called websites (sometimes called a homepage). Each
website carries information about a specific business or institution and may be
updated regularly by its host or webmaster.
A business may obtain helpful information by scanning or ‘surfing’ websites. Some
websites, known as search engines, can help you to identify other websites and/or
information of interest. A business can launch its own website to advertise its products
or services. Advertising via the World Wide Web ensures that the business can be
publicized throughout the world. In this way even a small business can advertise its
products worldwide and attract clients who would not otherwise know about them.
32
Unit 2
The Internet and e-business
E-business
E-business or e-commerce refers to the process of buying and/or selling by using the
Internet to locate the desired product or service, and to discuss payment. One of the
advantages of e-business is that geographical distance does not present a problem
for conducting transactions.
The client may visit the website launched by a certain business and find a product
or service that he or she needs. The client then communicates by e-mail with the
business to order the product or service and to indicate the method of payment. A
small business may find it extremely cost-effective to advertise via the World Wide
Web, as launching a website is a relatively inexpensive process.
Communicating by e-mail and scanning websites depends very much of course on
the quality and efficiency of the local telephone network and electricity supply.
Q Ask participants to carry out exercises as appropriate, taking into consideration
the equipment available and the participants’ level of familiarity with them.
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Programme:
STARTING MY OWN SMALL BUSINESS
Beneficiaries:
Non-formal learners of all ages and educational backgrounds
Duration:
Flexible. As appropriate to the group of learners. Each unit may
be discussed for at least 1 hour.
Profile:
Programme to be moderated by a facilitator. Instruction and interactive sessions
to be conducted together.
Rationale:
To help learners to become aware of their own knowledge and skills and to develop the acumen to consider
entrepreneurship a viable career choice.
General objectives:
1. Know one’s own knowledge, skills, aptitudes and values.
2. Understand elementary business dynamics.
3. Know how to manage a small business.
4. Know how to translate a commercial idea into a business plan.
5. Know how ICT can be used in a small business.
Unit
Specific learning outcomes
Activities
Resources
GENERAL OBJECTIVE 1: KNOW ONE’S OWN KNOWLEDGE, SKILLS, APTITUDES AND VALUES
1. Learning together
1.1 Know how the participant will benefit
from the programme.
1.2 Interact effectively with other participants and the facilitator.
1A. Self-introductions.
1B. Establish ground rules.
1C. Discuss previously acquired experiences.
Facilitator’s guide and participant’s workbook.
Flipchart/chalkboard.
1.3 Develop an interest in knowing about
1D. Discuss what participants undersand creating a small business.
tand by ‘small business’.
1.4 Be aware that the participants have
useful knowledge and experience to
contribute.
2. My entrepreneurial skills
2.1 Be aware of the groups of skills required for entrepreneurship.
2.2 Know which of these skills they possess.
2A. Identify different groups of skills.
2B. Discuss each individual’s skills and
how they use them.
Facilitator’s guide and participant’s workbook.
Flipchart/chalkboard.
2.3 Be able to communicate how they
have used these skills.
3. My ideas for small business
3.1 Know how to identify need in the
community.
3A. Discuss needs in the community.
3B. Generate ideas on catering to that
need.
3.2 Be able to deduce how to cater to that
need.
3C. Form small groups to translate the
above ideas into practical business
3.3 Be able to translate the above concept
concepts.
into a practical business idea.
Facilitator’s guide and participant’s workbook.
Flipchart/chalkboard.
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Unit
Specific learning outcomes
Activities
Resources
GENERAL OBJECTIVE 2: UNDERSTAND ELEMENTARY BUSINESS DYNAMICS
4. My market
5. Setting my prices
4.1 Understand the concepts of ‘demand’, 4A. Interactive discussion on the concepts
‘customer’, ‘market’ and ‘competitor’.
of ‘demand’, ‘customer’, ‘market’ and
‘competitor’.
4.2 Be able to design a simple market
survey.
4B. Guide participants in designing a simple market survey by encouraging them
to generate novel methods.
Facilitator’s guide and participant’s workbook.
5.1 Understand the concepts of ‘cost of 5A. Explain the concepts of ‘cost of
production’, ‘overheads’ and ‘profit
production’, ‘overheads’ and ‘profit
margin’.
margin’.
Facilitator’s guide and participant’s workbook.
5.2 Know how to set prices based on
these concepts.
5B. Discuss setting prices based on
cost of production, overheads and
profit margin.
Flipchart/chalkboard.
Loose paper (to design and carry out the
survey).
Flipchart/chalkboard.
5.3 Understand how supply and demand
can influence price.
5C. Introduce the concept of ‘supply and
demand’.
5D. Apply concepts to a local example.
6. Finding the money to start
my business
6.1 Be able to estimate start-up costs.
6A. Group sessions on estimating startup costs for their business idea.
6.2 Be aware of the possible sources of
funding available locally.
6B. Discuss possible sources of funding
and their advantages and disadvan6.3 Know how to access the various postages.
sible sources.
6C. Explain how to access funding
sources.
Facilitator’s guide and participant’s workbook.
Flipchart/chalkboard.
Local material on funding sources.
7. Banking
7.1 Understand the difference between
current and savings accounts and
their uses.
7A. Explain the difference between current and savings accounts.
7B. Introduce the steps involved in opening and managing an account.
7.2 Know the basic steps required for
opening and managing a bank ac7C. Emphasize the importance of keecount.
ping personal and business funds
completely separate.
7.3 Know the importance of keeping
personal and business accounts
separate.
Facilitator’s guide and participant’s workbook.
Flipchart/chalkboard.
Loose paper (to design and carry out the
survey).
GENERAL OBJECTIVE 3: KNOW HOW TO MANAGE A SMALL BUSINESS
8. Keeping track of my money
8.1 Know the functions of a receipt book,
expense book and cashbook.
8A. Introduce the functions of a receipt
book, expense book and cashbook.
8.2 Understand the importance of a filing
system.
8B. Guide participants in filling in a receipt
document, expense book and cashbook.
8C. Highlight the advantages of an organized filing system.
Facilitator’s guide and participant’s workbook.
Flipchart/chalkboard.
Examples of a receipt book, cashbook and
expense book.
8D. Demonstrate a simple filing system.
9. Communicating with my customers and business partners
9.1 Be aware of the importance of effective communication.
9A. Discuss the importance of effective Facilitator’s guide and participant’s workcommunication in business.
book.
9.2 Know how effective communication
can help a business.
9B. Discuss how communication can
help in business.
9.3 Be able to articulate a simple business proposition.
9C. Guide participants in role-playing
business scenarios.
Flipchart/chalkboard.
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Unit
Specific learning outcomes
10. Making the best use of my 10.1 Be aware that in business, time is
time
money.
10.2 Understand the concept of time
management.
10.3 Be able to carry out multiple tasks in
a time-coordinated manner.
Activities
Resources
10A. Introduce the concept that time is
money in business.
Facilitator’s guide and participant’s workbook.
10B. Discuss time management.
10C. Guide participants in role-playing
the co-ordination of multiple tasks.
Flipchart/chalkboard.
Clock if available.
10D. Discuss the importance of efficiency.
10.4 Understand that efficiency is crucial
for the sucess of the business.
11. Observing rules and regulations
11.1 Know local rules and practices governing the start-up and management of a small business.
11.2 Be aware of benefits and incentives
offered locally to entrepreneurs and
new small businesses.
12. Managing my workplace
11A. Explain local rules and practices Facilitator’s guide and participant’s workgoverning the start-up and manage- book.
ment of small businesses.
Flipchart/chalkboard.
11B. Discuss benefits and incentives offered locally.
Copies of rules and regulations as appro11C. Invite a local entrepreneur to discuss priate.
opportunities and challenges in starting a small business.
Copies of other documents as necessary.
12.1 Understand the concept of a workplace as separate from a living space.
12A. Introduce the concept of ‘the workplace’ as opposed to a living space.
Facilitator’s guide and participant’s workbook.
12.2 Be aware of the importance of an organized and safe workplace.
12B. Discuss the importance of an organized workplace.
Flipchart/chalkboard.
12.3 Be methodical and able to implement basic safety measures in the
workplace.
12C Discuss how to organize the workplace and implement safety precautions.
Any locally-available industrial safety material (pamphlets, brochures, etc.).
GENERAL OBJECTIVE 4: KNOW HOW TO TRANSLATE A COMMERCIAL IDEA INTO A BUSINESS PLAN
13. My business plan
13.1 Understand why a business plan is 13A. Explain why a business plan is nenecessary.
cessary.
Facilitator’s guide and participant’s workbook.
13.2 Know the information that constitutes the business plan.
13B. Discuss the information that constitutes the business plan.
Flipchart/chalkboard.
13.3 Be able to draft a simple plan for
one’s own business.
13C. Guide groups of participants in
drafting a business plan.
Examples of business plans.
GENERAL OBJECTIVE 5: KNOW HOW ICT CAN BE USED IN A SMALL BUSINESS
1B. Contacting my clients and
partners with ICT
1B.1 Be aware of how ICT can help a
small business.
1B.A Discuss how locally-available ICTs
can help a small business.
1B.2 Be familiar with the traditional and
modern ICTs used in small business.
1B.B Discuss traditional and modern ICTs.
1B.3 Know the functions a computer can
perform.
2B. The Internet and e-business
1B.C Discuss how a computer can help a
small business.
Facilitator’s guide and participant’s workbook.
Flipchart/chalkboard.
Locally-available ICTs as appropriate.
1B.D Demonstrate examples of locallyavailable ICTs.
2B.1 Know the potential of the Internet 2B.A Discuss the potential of the Internet Facilitator’s guide and participant’s workfor a small business.
for a small business.
book.
2B.2 Understand how e-mail can help a
small business.
2B.B. Discuss how e-mail can help a small
business.
2B.3 Be aware of the potential of e-business.
2B.C. Discuss the potential of e-business.
Flipchart/chalkboard.
Computer linked to the Internet if available
locally.
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